On Friday, the value of Bitcoin increased to $26,000. This increase was supported by the application of Ark Invest for an Ether ETF and the continued efforts of Grayscale for its potential Bitcoin ETF. From September 1st to September 8th, Bitcoin rose by 1.1% to $26,267.
According to CoinMarketCap data, the world’s largest cryptocurrency by market capitalization has been trading below $30,000 since August 9th. After falling to a weekly low of $25,413 last Friday, Bitcoin briefly rose above $26,000 on Sunday and Monday before regaining the support level on Friday.
Crypto Market Had Mixed Trading Operations All Week
Despite Grayscale’s recent court win, investor confidence in Bitcoin remains subdued and the court victory failed to boost the Bitcoin price. The unenthusiastic response to the recent developments in the crypto sector indicates a generally bearish sentiment among investors.
Many investors are diversifying their portfolios by including assets other than Bitcoin, such as stocks or real estate. While the crypto markets have been relatively quiet in recent months, the stock market offers more volatility and therefore more opportunities for investors.
On Tuesday, Grayscale’s lawyers sent a letter to the Securities and Exchange Commission (SEC) requesting a meeting to discuss the conversion of the Grayscale Bitcoin Trust into an exchange-traded fund (ETF). In their letter, Grayscale’s lawyers argued that there are no grounds for the SEC to continue blocking the conversion.
On Wednesday, Ark Invest, an asset management company, filed for a spot Ether ETF in the United States and named Coinbase as its custodian. If approved, this would be the first publicly traded Ether ETF in the U.S. Despite this positive development, Ether, the world’s second-largest cryptocurrency, only increased by 0.16% over the week to $1,647.
On the same day, the Financial Accounting Standards Board approved institutional fair value accounting for Bitcoin. These long-awaited rules will come into effect in 2025 and will allow companies with large Bitcoin holdings to report their assets at fair value. This will capture the most up-to-date value of the asset and make it easier for companies to hold Bitcoin.
